Railway Retirement Bill Steams Ahead

December 4, 2001 (PLANSPONSOR.com) - The railway
retirement bill, which would let the federally administered
railroad pension system redirect some of its assets from
Treasury bonds to equities, has taken a few steps forward in
the US Senate, Reuters reports.

The bill, which was passed by the House of
Representatives in July, is at the center of a debate that
has seen lawmakers argue over what legislation should take
precedence in the final days of the 2001 session.

The bill, which is backed by the unions and the private
sector, aims to cut railroads’ payroll taxes while boosting
retirees’ benefits.

While attracting broad bi-partisan support, the bill
does have its share of opposition. Senator Phil Gramm (R –
Texas) plans to add amendments that would:

postpone the tax and benefit changes until the new
private investments actually begin to earn income,
and

link the railway retirement age, which the bill
proposes to lower to 60 in some cases, to the Social
Security retirement age, which is moving from 65 to
67

Senator Orrin Hatch (R – Utah) defended the measure,
saying it had a clause that would help safeguard against a
possible taxpayer bailout if things go wrong, according to
Reuters.